In thinly traded markets for heterogenous, durable goods, such as housing, intermediaries may play especially important roles. Using a unique micro-level dataset of housing transactions in Los Angeles from 1988-2008 and a novel research design, we identify and measure the importance of two very...

Researchers have long recognized that the non-random sorting of individuals into groups generates correlation between individual and group attributes that is likely to bias naïve estimates of both individual and group effects. This paper proposes a non-parametric strategy for identifying these...

We provide evidence that graduating from college plays a direct role in revealing ability to the labor market. Using the NLSY79, our results suggest that ability is observed nearly perfectly for college graduates. In contrast, returns to AFQT for high school graduates are initially very close to...

Tiebout’s classic 1956 paper has strong implications regarding stratification across and within jurisdictions, predicting (in the simplest instance) a hierarchy of internally homogeneous communities, ordered by household income. In practice, urban areas tend to exhibit varying degrees of...

This paper presents a new approach for measuring the effects of competition on school performance. We use an equilibrium sorting model to generate an intuitive measure of the competition each school faces, captured by the slope of the school’s demand curve. We then show that this competition...

This paper provides a method for estimating large-scale dynamic discrete choice models (in both single- and multi-agent settings) within a continuous time framework. The advantage of working in continuous time is that state changes occur sequentially, rather than simultaneously, avoiding a...

Appendix to working paper titled "Beyond Signaling and Human Capital: Education and the Revelation of Ability." In that paper, we provide evidence that graduating from college plays a direct role in revealing ability to the labor market. Using the NLSY79, our results suggest that ability is...